At NAT's request, the underwriters have reserved for sale an aggregate of 534,000 common shares to all the members of the company's board, certain members of the company's management and all NAT advisors.
The 534,000 common shares include around 100,000 shares to be purchased by the company's chairman and CEO and 400,000 shares to be purchased by the vice chairman. Furthermore, between 17th and 22nd August, 2016, NAT's chairman and CEO purchased 210,000 common shares - in total worth $2.3 mill at the time.
NAT also intends to grant the underwriters a 30-day option to purchase up to an additional 1,650,000 common shares.
The company said that it intends to use the net proceeds of this offering primarily to finance the expansion of its fleet and for general corporate purposes.
Immediately following the offering, NAT may use the proceeds to repay borrowings under its revolving credit facility, pending application towards other uses.
The common shares purchased by the underwriters are expected to be offered for resale from time to time in negotiated transactions or otherwise, at market prices on the New York Stock Exchange prevailing at the time of sale, at prices related to such prevailing market prices or otherwise. On 23rd September, 2016, the closing price of the company's common shares on the NYSE was $10.85 per share.
Morgan Stanley is acting as the bookrunning manager for the offering and DNB Markets and Skandinaviska Enskilda Banken are acting as co-managers of the offering.